GROW YOUR BUSINESS WITH SPRING

GROW YOUR BUSINESS WITH SPRING 2009

DISCOVER OUR LATEST! WELCOME TO!, an international leader in the buying, marketing and retailing of fine wines and premium spirits, is a business unit of the LCBO (Liquor Control Board of Ontario). Our vision is to engage customers in the experience of shopping, buying and collecting from our A Product Consultant ever-changing assortment of fine wines and premium spirits across all price points. In our world of continuous discovery, buyers shop the world for unique items and products of exceptional quality and value. In this guide, we introduce you to Retail Programs, Classics Collections, Direct Offers and Special Tasting Events, as well as our comprehensive e-marketing channels: www.vintages.com, www.vintagesshoponline.com and Latest email newsletters. We also provide information on how to grow your business with. Inside, you will find details regarding our program fees, purchasing process, and resources available online. To ensure your products are reviewed and considered for purchase, it is very important to understand these processes and utilize the resources available. For the fiscal year ending March 31, 2009, the LCBO had total net sales of $4.27 billion, a growth of 3.9% over the previous year. accounted for more than $325.8 million in net sales, or 7.6% of the LCBO s net sales. sales grew by 7.8% over the previous year. At we offer our customers a world of continuous growth and discovery, and we invite you to be our partner. This guide shows you how. We look forward to doing business with you. We are very excited about our lineup of thematic releases for 2009-2010 (see page 6 for details). Indeed, has a number of programs and services that can increase your product s profile in our marketplace and maximize revenue. Spring 2009 1

CONTENTS RETAIL STORES 3 Retail Stores 3 LCBO/ Retail Stores 4 Retail Programs 4 Retail Release 5 Retail Release Themes 6 2009-2010 Release and Promotional Calendar 7 Wines of the Month 7 Benchmark 7 Arrive in Style 8 VQA Wine of the Month 8 ON Tour 14 Grow Your Business With 15 Agent Representation at Avenue Road 8 Food & Drink Discovery/ Entertains 9 Essentials Collection 10 Direct Programs 10 Classics Collection 10 Bordeaux Futures 11 Online 11 Website 11 Latest 12 Virtual Offers 12 Shop Online 13 Events 2 Spring 2009 16 Purchasing Process 16 Preliminary Selection 16 Other Ways Selects Products 16 Sales Performance Targets 16 Policy On Granting Supplier Meetings 17 Purchase Orders 17 Payment Inquiries 17 Re-orders 18 Resources Available Online 18 New Item Submission System (NISS) 18 What s Available at www.lcbotrade.com 19 Program and Fee Summary Chart 20 Sales 21 Contact Information products are available through a network of 220 of the LCBO s 600+ retail stores across Ontario: 5 Specialized Stores (1700-2000+ products). 40 Boutiques (801-1700 products). 170 Corners & Sections (50-800 products). LCBO s Advantage: A highly trained team of 200 Product Consultants in our Retail stores, whose expertise and knowledge of products provides an invaluable service to customers. Three of key retail stores are: Summerhill Store 10, Toronto The Summerhill store features contemporary design and decor within the framework of an historic North Toronto railway station. The largest store of its kind in Canada, the 21,000 square-feet (1,950 sq. metres) shopping area offers more than 1700 premium wines and spirits. There s also a demonstration kitchen for wine appreciation courses, tutored tastings and cooking presentations, as well as a separate premium tasting room and five tasting stations. The store s highly trained, knowledgeable staff includes eight resident Product Consultants who offer expert guidance to customers and bars and restaurants. Avenue Road Store 452, Toronto This new store on busy Avenue Road opened for business October 22, 2008. The store s twolevel retail space (10,500 sq. feet, 975 sq. metres) offers nearly 1600 products, provides the services of six specially trained Product Consultants and features the largest tasting bar of any LCBO store. Rideau Street Store 38, Ottawa Ottawa is Canada s capital city and the Rideau Street store is the LCBO s largest store in Eastern Ontario. With 17,600 square feet (1,635 sq. metres) of shopping space on two levels, this store offers 2100 premium wines and spirits in an extensive section on the lower level. A demonstration kitchen/learning centre serves up cooking presentations, wine appreciation classes and educational tastings. There is also an extensive gift section plus displays showcasing premium spirits and cocktails. Spring 2009 3

RETAIL PROGRAMS RETAIL RELE A SE The Retail Release program is the core of business: 120 new products released into the Retail network every two weeks. Supported by the Retail Release catalogue, available free to customers in print & online. Includes major themes/spotlights on countries, wine regions, varietals, wine types, producers, etc. Our buyers and team of researchers provide information on each product, including in-house tasting notes or reviews by Robert Parker Jr., Wine Spectator, etc., plus recommendations on food-matching and cellarability. Distribution: 43,500+ mail subscribers; 15,000 copies distributed in LCBO stores every two weeks. A web version of the catalogue is available online at www.vintages.com and promoted through our Latest email marketing program (18,500 subscribers and growing). Selection of products promoted in the LCBO s award-winning Food & Drink magazine. RETAIL RELE A SE THEMES In each Retail Release catalogue, features a country, region, varietal, winemaker or special collections/groupings of product. The country/region release themes are thoroughly researched, richly illustrated and designed to transport the customer to the place featured through exciting product selections, sumptuous food pairings and stunning visuals. Varietal themes educate customers about a specific grape variety and the different styles of wine it produces. Educating customers encourages them to discover wines that they might not normally buy and serves to build their confidence in shopping at. also profiles specific winemakers and their products within the context of a country/region or varietal theme. Grilling/Barbecue, and Affordable Party Picks. On the following page is the calendar of release themes for 2009-10. For the schedule of application, submission and tasting of products for releases, please go to the LCBO Trade Resources website: www.lcbotrade.com. 4 Spring 2009 Special collections/groupings of product have included: Eco-friendly, Food Matching, Spring 2009 5

RETAIL RELEASE THEMES RELE A SE AND PROMOT IONAL C ALENDAR MAY 2009 APRIL 2010 MAY 2009 JUNE 2009 JULY 2009 May 2 Tuscany California May 23 New Zealand June 6 Burgundy Rosé June 20 Malbec Father s Day/Canada Day July 4 Summer Entertaining Oregon July 18 Campania, Sicily, Puglia Germany Single Vineyard AUGUST 2009 SEPTEMBER 2009 OCTOBER 2009 August 1 BBQ Wines BC Wines August 15 Chile Châlonnaise, Mâconnaise August 29 Rhône California Red Zinfandel September 12 VQA Ontario Portugal September 26 Napa Spirits Scotch October 10 Italy: Piedmont, Tuscany, Veneto October 24 Australia Ports, Sherries, Fortifieds NOVEMBER 2009 DECEMBER 2009 JANUARY 2010 November 7 Affordable Party Wines Gifting November 21 Our Finest/Premium Gifting December 5 Holiday Dinner Wines Fizz January 9 Smart Buys January 23 Argentina Robbie Burns FEBRUARY 2010 MARCH 2010 APRIL 2010 February 6 90+ Wines Valentine s Day February 20 Southern Rhône Kosher March 6 Chile St. Patrick s Day March 20 Easter Entertaining Ontario Whites April 3 Spain Bordeaux The Côtes April 17 Eco-friendly South Africa * Release themes are subject to change. WINES OF THE MONTH The highly successful Wines of the Month (WOM) program features two products every four weeks and profiles them on the inside front cover of the Retail Release catalogue and on our website. Highlights of program: Products offer an exceptional quality-toprice ratio. High visibility/promotion within locations products placed on end-aisle displays with full-colour point-of-purchase materials. Risk-free introduction for customers new to. Customers recognize these products as having stamp of approval. WOM sales typically range from 1000 to 2000 cases within each four-week promotional period, selling significantly more than non-featured products of similar price points. BENCHMARK This program educates the wine consumer within the context of a release theme or spotlight by focusing on a product that exemplifies a country, region, appellation, grape variety or style. The Benchmark is profiled on the inside front cover of the Retail Release catalogue (alternates with the Wines of the Month) and on our website. ARRIVE IN ST YLE The bi-weekly Arrive in Style program highlights products suitable for gift-giving and entertaining, with a gift box or bag sold separately. Arrive in Style products are profiled on the inside back cover of the Retail Release catalogue and on our website. This program is designed to give customers confidence in selecting wines for entertaining as well as continuously positioning as the premier source for gifting. Typical WOM retail price: $14-$20. 6 Spring 2009 Spring 2009 7

RETAIL PROGRAMS (CONT D) VQA WINE OF THE MONTH The VQA (Vintners Quality Alliance) Wine of the Month program features a different Ontario VQA product 12 times per year priced in the range of $15-$20. ON TOUR ON Tour profiles an Ontario VQA producer, their history, winemaking philosophy and wines. It is featured 12 times per year. FOOD & DRINK DISCOVERY/ ENTERTAIN S This highly successful program is designed to reach new customers via the LCBO s Food & Drink magazine. Readership for this award-winning publication is an astounding 2,297,000 per issue. Highlights of program: Launched every two months, this program features two products strategically priced at $15. Products are selected by the buying team based on a very high quality-to-price ratio. ESSENTIALS COLLECTION The Essentials Collection is a portfolio of products that is continuously available through our retail locations. It consists of 100 core products that are proven customer favourites. Essentials products are world-renowned brands, each having demonstrated a great quality-to-price ratio and success in our market. This is a highly successful program, representing $106 million or 31.9% of total sales, an increase of 16.52% over last year. Sales performance of Essentials products is reviewed on a regular basis. A rotating selection of Essentials products is also featured in our Retail Release catalogue. Essentials products receive additional promotion through the successful Summer Store program. This program provides customers with access to products in 90+ specially selected cottage-country stores during the busy summer holiday months. The Essentials Collec tion is also promoted at special events and in advertising supplements. 2000 to 2500 cases per product are purchased. Products are promoted in the Retail Release catalogue, on our website and in stores with large displays and signage. promotes the Essentials Collection with a full-colour glossy catalogue as well as on website www.vintages.com. This publication is distributed with our Retail Release catalogues, reaching 43,500+ customers directly. An additional 20,000 copies are distributed through our Retail network. 8 Spring 2009 Spring 2009 9

DIRECT PROGRAMS ONLINE CL A SSIC S COLLECTION The Classics Collection offers a selection of the world s greatest fine wines and premium spirits. Primarily a direct marketing program, the Classics Collection focuses on the latest limited allocations from some of the most prestigious, sought-after estates and producers in the world, as well as acclaimed older vintages and other rare selections. Each Classics Collection presents approximately 150-200 new and unique products and is launched three times per year: February, May, and October. Customers order through directly via email, fax and telephone. Catalogues are mailed to 15,000 subscribers and distributed in stores. Products are featured on our website and highlighted through the Latest email marketing program. BORDE AUX FUTURES This program began with the 1989 vintage, and each year offers a broad selection of the finest cru classé wines including all First Growths, and such Right Bank luminaries as Pétrus, Cheval Blanc and Ausone, to name just a few. Sales volume in the Bordeaux Futures program depends on the quality of the vintage. Competi tion for the products is fierce, especially with highdemand vintages. has developed excellent relationships with major Bordeaux négociants and producers. This aids in securing outstanding assortment and supply. For fiscal 2008-09, total annual sales for the Classics Collection, Bordeaux Futures and other direct programs represented 10.04% of total sales, or $32.7 million. WEBSITE The website provides our customers with complete information on products, programs and services. As with all of our publications, the website is available in English and French. The product search engine at www.vintages.com lets customers access product notes, daily store inventory and store locations anytime. L ATEST Our customers get connected with Latest email bulletins and are the first to receive notice of special events, new releases and exclusive offers. We partner with producers around the world to offer rare, older vintages and large formats direct from their cellars. Recent Latest offers have included Ports, Bordeaux, plus wines by Guigal, Bertani, Zenato, Beringer and Dominus. Current number of subscribers is 18,200. Sign up at www.vintageslatest.com. 10 Spring 2009 Spring 2009 11

ONLINE EVENTS VIRTUAL OFFERS Throughout the year partners with suppliers to offer small lots, rare, older vintages and large formats to our customers, often direct from the producers cellars. Recent offers have included: Grant Burge & Torbreck, Kilikanoon, Château Doisy-Daëne, Château Pontet-Canet, Planeta and Henschke. orders stock to match customer demand and to meet is own requirements thereby eliminating surplus inventory. SHOP ONLINE VintagesShopOnline.com, launched October 22, 2008, offers an additional portfolio of fine wines and spirits. At home or the office, our customers can shop from our exclusive, ever-changing online assortment of products 24 hours a day, 7 days a week. Inventory is shown in real time so customers always know what s available. We ship purchases free of charge to the LCBO store of their choice. Sales as of March 31, 2009 were $1.4 million. Products from Bordeaux, Burgundy, Champagne, Italy, California, Australia and Ontario, verticals from châteaux and estates, large formats as well as collector items such as Madeira, eau-de-vie and Scotch are available here first. New releases are announced monthly to subscribers of the Latest email bulletin. Current number of registered users is 5,265. events play an integral part in developing customer relationships and building our brand. These range from small structured tastings/winemaker s dinners to medium-sized tastings (50-200 people) to large-scale, taste-and-buy events (500+ people). Taste Our Latest events offer customers an opportunity to taste and pre-order 50+ premium wines on-site. These are held regularly in Toronto and rotate through other cities in Ontario such as Ottawa, London and Kitchener-Waterloo. WINE 101 is aimed at new customers who are just getting into wine and are eager to learn. These innovative educational events present a variety of wines and spirits in an interactive, approachable and fun way. More intimate are our structured tastings and winemaker s dinners, with such notables as Stephen Henschke, Grant Burge, David Powell of Torbreck, the Speck Brothers of Henry of Pelham, Jean-Philippe Delmas of Château Haut-Brion, Eduardo Chadwick, Alexandra Lapostolle, Aurelio Montes, Philippe Guigal, and Alberto Zenato, to name but a few. 12 Spring 2009 Spring 2009 13

GROW YOUR BUSINESS WITH Increase your products exposure in the various participation programs: Wines of the Month, Arrive in Style, Benchmark, VQA Wine of the Month, Food & Drink Discovery, cover positions of publications and advertisements, etc. A command of Ontario s liquor laws and LCBO packaging standards including the primary information that must appear on a bottle label (e.g., % alc./vol., country of origin, wine type, metric size) to ensure products are legally marketable in the province of Ontario. The market for fine wines and premium spirits in Ontario is very competitive. Suppliers from around the world vie for shelf space and presence in various programs. Our customers are becoming increasingly sophisticated, educated and enthusiastic to try new products. They are also demanding higher quality for their money. How do you promote and grow brands in such an intensely competitive market? Offer exceptional price/value ratio Ontario consumers are very savvy and are aware of international wine prices. Work with a strong agent and sales team to focus on Retail and On-premise sales and execution. Develop and execute a strong marketing plan that promotes and sells products through advertising, media and partnerships. Provide purchasing incentives such as Bonus AIR MILES (a loyalty program) for a four-week period. Where and when possible quote product price in Cdn. dollars to provide price stability in the marketplace. Take advantage of new Tasting Bar initiative. Offering samples to customers in stores is a proven method of effectively selling new products and driving sales of existing products. Food & Drink offers excellent advertising opportunities. The LCBO publishes this highly acclaimed magazine which features wine, spirits, beer and other alcohol beverage products alongside food and entertaining ideas. Food & Drink is produced six times per year and is available free of charge to LCBO customers. Readership for this publication is an astounding 2,297,000 per issue. Use in-store Point of Purchase materials such as neck tags, value-adds and contests. Note: these must be negotiated with the Category Team in advance. Partner in Events. AGENT REPRESENTAT ION Working with a strong agent in Ontario should be a supplier s top priority. The agent should know the Ontario beverage alcohol market as well as be aware of global trends and successful market strategies. A prospective supplier should expect a qualified agent to demonstrate the following: A thorough knowledge of the beverage alcohol market in Ontario, especially the market segment. A list of primary contacts (e.g., Category and/or Product Managers). A list of the brands he/she currently represents and are sold through. The Sales performance of each brand, including length of time in market and percentage sell-through by the end of the third month. Note: expectation is 75% sell-through in 60 days, and 100% sell-through in 90 days. The number of sales representatives working on the portfolio, and how many are assigned to the Licensee (on-premise) channel to promote products. A comprehensive understanding of how procures its products, including how to submit a listing application through NISS (see details on page 18). A familiarity with programs (e.g., Retail Releases, Essentials Collection, Classics Collection, Bordeaux Futures, Latest email bulletins, Events) and how to best leverage them to sell product. Knowledge of promotional offers available to promote products in, e.g., Bonus Reward Miles through AIR MILES Loyalty program, Limited Time Offers (LTO), advertisements in LCBO s Food & Drink magazine, catalogue cover pages, etc., and how to apply for each program. Awareness of various programs, including the new Tasting Bar program and knowledge of how to apply. Experience developing an external marketing plan that employs a range of media: print (newspapers/magazines), online, radio, and outdoor advertisements (billboards/bus shelters). Proactive media coverage through tastings of release products to kindle media attention. A strong relationship with the LCBO Retail Team: Regional Director, District Managers, Store Managers, and Product Consultants. Familiarity with process of setting up meetings to discuss business opportunities with Store Managers & Product Consultants at retail level. Excellent knowledge of LCBO practices and policies. 14 Spring 2009 Spring 2009 15

PURCHASING PROCESS PRELIMINARY SELECTION issues a needs letter to the trade three times per year that outlines what types of products the buyers are looking to purchase in the coming months. The letter and a tasting schedule of product requirements (which specifies product types, submission deadlines, sample deadlines, tasting dates and contact information) are posted on the LCBO Trade website, ww.lcbotrade.com, in PDF format. OTHER WAYS SELECTS PRODUCTS selects products in many ways including: Direct Offers: from suppliers and agents; this requires the pre-approval of a Category Manager. Allocations: negotiates for larger allocations of established products with high global demand. Proactive Purchasing: seeks out new and interesting products from qualityminded producers. Trade shows, business trips, wine fairs. SALES PERFORMANCE TARGETS expectation is that a product will achieve a minimum of 75% sell-through two months from release and 100% sell-through by the end of the third month. If the product fails to achieve a 75% sell-through within three months of release then the supplier or the agent must provide a 20% rebate for all inventories (retail & warehouse) that are remaining. The price of the product will subsequently be marked down for faster sell-through. Agents/suppliers can track individual sales free of charge through the LCBO s Sale of Data website (see page 18). Sample only. Visit www.lcbotrade.com for complete details. POLIC Y ON GRANTING SUPPLIER MEETINGS Agents and suppliers should be aware that meetings to discuss supplier portfolio opportunities will be granted only if there is a current interest in purchasing products from this supplier. Agents must submit a brief outline of what will be discussed at the meeting (i.e., specific products of interest, promotional plan) to allow the buyer an opportunity to evaluate the value of a face-to-face meeting. Requests for meetings must be made at least three weeks in advance. PURCHA SE ORDERS A purchase order is typically issued within six weeks after the Letter of Commitment is transmitted. Once all the conditions stipulated in the letter have been satisfied and agreed to in writing, a purchase order will be faxed to the Supplier. The Agent will receive a detailed report of the purchase the week following the issuance of the purchase order. Full terms of purchase are set out on the reverse side of the purchase order. Once the purchase order is issued, the terms of purchase are to be strictly adhered to or the order will be cancelled. PAYMENT INQUIRIES Payment inquiries should be directed to our Finance Division at 416-365-5723 or faxed to 416-365-5766. RE-ORDERS Once a product has sold out, it is generally not re-ordered. However, from time to time when sales are spectacular or there is an ongoing demand, a re-order may occur. A decision to re-order a product is at the discretion of the Category Manager and will be based on availability, price, sell-through and market demand. Complete guidelines for submissions can be found at www.lcbotrade.com. 16 Spring 2009 Spring 2009 17

RESOURCES AVAILABLE ONLINE PROGRAM AND FEE SUMMARY CHART NEW ITEM SUBMISSION SYSTEM (NISS) To apply for product purchase consideration, all product applications must be made on the LCBO s New Item Submission System (NISS) by the date outlined on the Needs Letter. NISS is an easy-to-use, web-based tool that allows agents and suppliers to: View LCBO Product Needs online. Submit products for review. Track the process of a product submission online. LCBO staff use NISS to log, track and approve or decline submissions. This application speeds up the application process and reduces turnaround times. Paper applications are not acceptable. Agents and suppliers must apply for access before they can use NISS. You will be assigned a password that will allow you to log into NISS. It takes approximately 4 weeks to obtain a password. To use NISS, agents must fill in all mandatory fields of the Application for Access to NISS form, and then print, sign and fax it to the appropriate LCBO Business Unit: Wines, Spirits, Beers and Special Markets, or. You must include your Agent number on this form. If you do not know your Agent number, then please contact the appropriate LCBO Business Unit for this information. 18 Spring 2009 GETTING WWW.LCBOTRADE.COM STARTED WITH NISS Go to www.lcbotrade.com to download the NISS User Guide in PDF format. The website s FAQ section also provides helpful information. In order to save and print NISS submission information, you will need Adobe Reader 6.0 or higher. WHAT S AVAIL ABLE AT WWW.LCBOTRADE.COM Release Themes Product Needs Letters Product Requirements Program and Fee Summary Chart Sales Reports: All agents/suppliers can obtain sales data for free on the Sale of Data website (https://lcbosod.com) Packaging Standards Guidelines for Chemical Analysis PROGRAM RETAIL RELEASE WINES OF THE MONTH BENCHMARK FOOD & DRINK DISCOVERY VQA WINE OF THE MONTH & ON TOUR ESSENTIALS COLLECTION CLASSICS COLLECTION HOLIDAY GIFTING BONUS AIR MILES (BAM) & LIMITED TIME OFFERS (LTO) TASTING EVENTS LATEST SHOP ONLINE (VSO) FREQUENCY Retail Release: every 2 wks; Release Catalogue: Bi-weekly Publication Every 4 wks Every 4 wks 6 per year Alternates Every 2 wks Always Available 3 per year One per year Per LCBO Promotion period 25 per year Weekly Every 2 wks COMMUNICATION VEHICLE Release Catalogue, website, Latest emails Release Catalogue, website Release Catalogue, website FOOD & DRINK magazine, Release Catalogue Release Catalogue, website ESSENTIALS Collection Catalogue packaged together with Retail Release Catalogue in May and October, website, Events. Catalogue. Latest emails, website Holiday Catalogue Insert in Release Catalogue, FSIs, website In-Store; Release Catalogue Direct mail, Release Catalogues, website, Latest emails Cross-promoted through Release Catalogue & website Cross-promoted through Release Catalogue & website MERCHANDISING IN-STORE (P.O.P.) Shelf Talkers: (For selected products) Backer Cards, Pricer Cards, Shelf Talkers Shelf Talkers Backer Cards, Pricer Cards, Shelf Talkers Backer Cards, Pricer Cards, Shelf Talkers Backer Cards, Pricer Cards, Shelf Talkers Shelf Talkers (for selected products) Backer Cards, Pricer Cards, Shelf Talkers Release Catalogue, Shelf Talkers N/A N/A N/A PARTICIPATION FEES* Feature Promotions: Primary Thematic Highlight: Jan.-Sept. $2,000; Oct.-Dec. $3,300 per product Secondary Thematic Highlight: Jan.- Sept. $1,600; Oct.-Dec. $2,300 per product Arrive in Style Highlight: $2,000 per product Jan.- Sept. $3,500; Oct.-Dec. $4,000 per product $2,000 per product $5,000 per product 1% of total value of Purchase Order Payment 1.5% of total value of Purchase Order Payment Opportunity: Consult with respective Product Manager. Opportunity: Consult with respective Product Manager. 2% of total value of Purchase Order Payment. Opportunity: Feature position Submit a completed IMAGE application to the appropriate Product Manager. Applications are due 3 months before the Promotional period.** Opportunity: Consult with respective Product Manager. Opportunity: Consult with respective Product Manager. Opportunity: Consult with respective Product Manager. Last Updated: April 2009 NEW Opportunities: Tasting Bar Program For all Retail Release Saturday Tastings, please contact Rose Holness at rose.holness@lcbo.com. For all other in-store tastings, email Dave Smith at dave.smith@lcbo.com. *Fees: Participation fees are under review and subject to change. **IMAGE Applications: Applications may be obtained online at www.lcbotrade.com/resources_forms.htm but MUST be submitted in hard copy. IMAGE rates and rules for the business unit are the same as the criteria outlined in the LCBO Support Program Guidelines found in the Merchandising Programs 2009/10 book. Spring 2009 19

SALES CONTACT INFORMATION NET SALES DOLL ARS & PERCENTAGE GROWTH 350000 300000 250000 200000 150000 100000 50000 0 $154,640 5.7% 2002-03 $176,053 13.9% 2003-04 $189,613 7.7% 2004-05 $218,000 11.5% 2005-06 $260,000 18.7% 2006-07 $299,500 15.2% 2007-08 $325,800 7.8% 2008-09 NET SALES AND MARKET SHARE April 2008 March 2009, Total Net Sales $325,800,000 SALES BY SEGMENT Red Table Wine 64.4% Other 2.0% Rosé 1.0% Fortified Wines 1.4% Icewine 1.8% Sparkling Wines 3.5% WHITE WINE $6 8,327,274 20.7% Spirits 5.2% White Table Wine 20.7% NUMBER OF PRO DUCTS RELE A SED SKUs 8000 7000 6000 5000 4000 3000 2000 1000 0 3,156 2003-04 4,464 2004-05 4,879 SALES BY COUNTRY Chile 4.0% Canada 5.7% France 22.9% Australia 9.6% Argentina 3.7% 4,997 2005-06 2006-07 Vintages Sales By Country Other 2.7% Germany 0.7% United States 16.3% Vintages Red Wine Sales By Country $212,243,151 Net 64.4% RED WINE $212,243,151 64.4% 6,927 2007-08 Italy 18.3% United Kingdom 1.6% 6,688 2008-09 New Zealand 5.4% Poland 0.6% Portugal 2.6% South Africa 2.4% Spain 3.5% Tom J. Wilson Vice President, 416-864-6750 tom.wilson@lcbo.com Tamara Jakes Category Manager, New World Wines & Spirits 416-365-5908 tamara.jakes@lcbo.com Tony D Alessio Product Manager, New World Wines & Spirits 416-864-6801 tony.dalessio@lcbo.com Paul Farrell Product Manager, Ontario Wines & Spirits 416-365-5860 paul.farrell@lcbo.com Alanna Bailey Product Advisor, New World Wines & Spirits 416-864-6649 alanna.bailey@lcbo.com Rose Holness Associate Manager, Events 416-365-5928 rose.holness@lcbo.com Kate Mallett-Thomas Director, Sales & Purchasing 416-864-2572 kate.mallett-thomas@lcbo.com Greg Dunlop Category Manager, European Wines 416-365-5876 greg.dunlop@lcbo.com Igor Ryjenkov, MW Product Manager, European Wines 416-864-6984 igor.ryjenkov@lcbo.com David Beauroy Product Advisor, European Wines 416-864-6395 david.beauroy@lcbo.com Bob Davio Inventory Manager, 416-864-6973 bob.davio@lcbo.com Susan Wheeler Associate Manager, Programs 416-864-6754 susan.wheeler@lcbo.com Italy 20.8% New Zealand 21.3% France 18.3% Others 3.3% Argentina 1.1% South Africa 1.5% United States 17.0% Canada 7.9% Australia 4.1% Germany 2.5% Chile 2.2% Italy 19.8% United States 18.9% France 23.4% Other 1.0% Australia 13.1% Argentina 5.3% Chile 5.2% Spain 4.5% South Africa 3.1% Canada 2.7% Portugal 1.7% New Zealand 1.3% 55 Lake Shore Boulevard East Toronto, Ontario, Canada M5E 1A4 Reception: 416-365-5863 Fax: 416-864-2540 www.vintages.com Laurie Harvey Supervisor, LCBO Contact Centre 416-365-5812 laurie.harvey@lcbo.com *Note: 2008-09 figures include LCBO kosher portfolio sales. 20 Spring 2009 Spring 2009 21

55 Lake Shore Boulevard East Toronto, Ontario, Canada M5E 1A4 www.vintages.com 8302